truffle farms · a truffle is the fruiting body of an underground mushroom or tuber; spore...

www.trufflefarms.com - [email protected] +44 (0) 207 859 4779

Forestry for Fine Food

T e F

Europe Ltd

Truffle Farms

2


Table of Contents

Vision & Mission Page 3

Introduction Page 4

Why Invest? Page 5

Our Unique Value Page 6

Our Guiding Principles (land, water, forests) Page 7

Back ground history of truffle production Page 8

Truffle losses and production today Page 9

The Scientific Approach

Our Truffle Experts Page 10

Our Scientific Team Page 10

Operational Strategy Plantation Development Page 11

Land Selection & Plantation Development Page 11

French Truffles & Return Maximisation Page 11

Husbandry & Cultivation Page 11

Harvesting & Processing Page 12

Yields & Returns Introduction Page 12

Historic & Current Market Yields & Prices Page 13

Future Market Yields & Prices Page 14

Crop Commercialisation Page 15

Table of Purchase Prices & ROI Page 15

International Buyers Page 16

Forestry & Taxation for UK Based Investors Page 3

Comparison, Taxes & Risks Investment Comparison Pages 16—17

Pay-down Analysis Chart Page 18

What is good for you is good for us Page 18

Tax Treatments of Forestry Page 19

Impacts on Returns 0

Purchase Considerations & Risk Factors Page 21

Agricultural Risks of Investing Page 21—23

Regulation & Authorisation Pages 24—25

Pay-As-You-Grow Pages 26—27

3


Vision

To be the grower and brand of choice globally for providing the

World’s finest and most annually consistent supply of French black

winter truffle and truffle products.

Mission

To grow a world class leading black truffle plantation business aligned to a world class leading sales marketing and distribution

network, that is synonymous with fine dining and eating through-out the world.

Before reading any further — ask yourself this question.

How much would you have to bid in an auction for a single tree that could

provide you or the people you love and care about with an

Ethical

Ecological

Environmental

Sustainable

& Low Tax

Annual income of £5,000.00 *

For Decades?

Our investment offering is a direct acquisition of truffle trees and crop rights therein.

Neither the offering nor TFE is regulated by the Financial Conduct Authority and you

will not be eligible for protection under the Financial Services Compensation Scheme

(FSCS). Your capital is at risk and returns are not guaranteed.

(*) Annual income is estimated on historical data and is not guaranteed

4


Welcome to the World of Truffles and to the world class cultivation & science we apply.

We have packed a lot of information into this Prospectus. That’s because the commer-

cially successful cultivation of the Perigord or Black Winter Truffle is a complex and in-

volving activity.

As a business that has environmental outcomes at the heart of what we do, we strive to

use as little paper as possible. However, to communicate the necessary amount of infor-

mation to help you make a decision about joining us and giving you the opportunity to

peruse it in your own time, necessitated a little printing above and beyond our paper-

less aims.

Truffles are all about time and we want you to take your own time reading through this

before deciding to take things further. We want you to poke around, ask questions, lift

up the rug and have a good look under. There’s lots of information on our website but

we have tried to include everything in here that you should need to come to a conclu-

sion. Of course, you can arrange to have a discussion and ask all the questions you want

until you get answers that put you in a place that you are comfortable with before join-

ing us.

This Prospectus is very much focused on clients who are interested in making an

“investment level” commitment to us, which we determine to be a minimum of 25 trees

(Eighth Acre) to 500 trees (1 Hectare). Clients interested in making a larger purchase

than this are welcome to read on but, should contact us directly to discuss their pur-

chase.

It’s true that by investment description, many experts would place forestry in the cate-

gory “exotic” and the same would be said of truffles. However, unlike many forestry

offerings, the location is not exotic nor hugely distant. A £30 flight, out of season will

suffice to allow you to visit our facilities and plantations and discover the rigorous sci-

ence and management behind any of the claims we make. We encourage you to do so.

Thanks for taking the time to be interested. I hope I will have the pleasure of having you

join us on this exciting, fun and lucrative journey as we create Foresty for Fine Food.

Yours faithfully

Martin Waddell — Founder, Truffle Farms Europe Ltd

5


Why Invest? - We offer a rare opportunity to invest in world leading Truffle Plantations at a time

when 95% of global truffle production has been lost, set against near exponentially rising demand in

the last few years in the United States alone. With further exponential demand for the world’s premi-

um luxury food from the tens of thousands of new wealthy from BRIC and MINT countries’.

True French Grown Tuber Melanosporum “TM” (Black Perigord Truffle) at €2,000p/kg command a

sustainable 30% - 90% premium in the retail market over TM produced in other truffle producing

countries. A key range of further advantages will be set out below.

We have created a structure which leverages:

The UK/French Taxation Treaty to allow for returns to be treated in ac-

cordance with UK Law. This provides for your investment to be free of

French Income Tax and UK Capital Gains and Inheritance Taxes.

The services of Micologia Forestal & Aplicada (MF&A) the World’s lead-

ing truffle tree science company and in Dr Marcos Morcillo, the World’s

most successful tree inoculation expert.

MF&A grow all trees from acorn, utilising our shared world class propa-

gation nursery at the renowned plant research facility of the Institute

Research Technology and Agronomia (IRTA) near Barcelona.

In addition to our long term operation and commercial crop sale services, we have developed a

strategy of flexible disposal of the Plantations in whole or lots, during the course or at the deter-

mination of your 15 Year tax-free licence period. Offering you the option of early stage exits.

The table below shows the forecast return as per level of purchase. For our current crop of

three year old trees we forecast returns of £805,840 over 15 years for a £95,745 single hectare

purchase. The table is based on a maximum crop of 256g p/tree @ €500p/kg sale price. You re-

ceive 80% of crop share annually and 50% of projected tree sale price in year 15 or earlier.

Forecast returns table for our current crop of 3 year old trees *

Land Use Trees Total Cost Total Income Profit IRR ROI

Hectare 500 £95,745 £805,840 £710,095 21% 742%

Two Thirds Hectare 335 £66,310 £504,637 £438,327 20% 661%

Acre 200 £45,756 £297,766 £252,010 18% 551%

Third Hectare 165 £38,281 £245,657 £207,376 18% 542%

Half Acre 100 £25,317 £147,128 £121,811 17% 481%

Quarter Acre 50 £14,614 £71,809 £57,195 16% 391%

Eighth Acre 25 £7,836 £35,466 £27,630 15% 353%

“In summary, a combination of land, location and world leading science offers an un-paralleled opportunity for Purchasers seeking to com-bine the value of long term investment and the tax ex-emptions agroforestry within the European Economic Area brings, with the world’s finest and most valuable luxury food at a uniquely advanta-geous time.”

(*) Forecast returns are estimated on historical data and are not guaranteed

6

www.trufflefarms.com

The Unique Value of Our Offer

Premium True French Black Perigord Truffles

The heritage of one of the World’s finest foods

An investment with low cost entry & mitigated risk

Keep or proportionally share your truffles

The only acorn-to-truffle controlled programme

The World’s leading inoculation methodologies

The proven best geography and soil conditions

Optimum planting, husbandry and management

Your own vacuum packed fresh truffle deliveries

Exclusive access to members updates and offers

Truffle discounts, visits and holidays for members

Ecological, Environmental & Sustainable returns

T e F

7


Our Guiding Principles — Ethical, Ecological, Environmental & Sustainable

We focus entirely upon tree growth from “acorn germination, to planting and husbandry over the

long term life of our trees” to produce great truffles. Fortunately, our attempt at providing the

finest quality produce delivers sustainability through significant natural, mature hardwood tree

reforestation. It thereby replenishes and protects a part of the natural environment under threat

from climate change. This gives us as much satisfaction, as successfully producing the finest

luxury food.

Land and Water - Two thirds of our planet is covered in water, which given a global population

of 7.2bn means, that the one third that is land is going to become increasingly stretched to

provide us with the food to sustain us. Acquiring land that others don’t want and making it useful

agricultural land for decades to come and a sustainable hardwood woodland thereafter, is only

going to become more and more valuable.

Commercial farming of cereals and other intensive food production crops, takes nearly 40% of all

the water consumed in western Europe and exhausts the natural minerals, richness and

structure of the soil. This can result in flood degradation of the land through soil wash-away and

even sometimes the sort of catastrophic landslides seen during flooding. Planting trees for crops

that are low water maintenance, reduces impact on water pressure, whilst having minimal impact

on the soil and in fact enriching stabilisation through extensive root systems.

It is important to understand that nature itself, needs to take its time to make its core

contribution to the development of our truffles.

In a post 2008 age, there is something both fulfilling and eminently right about reconnecting

with the cycle of nature, represented by investing, ethically, ecologically, environmentally and

sustainably in our natural resources.

Trees as a Resource - We are all aware that trees are a vital component in our planet’s health and sustainability. Planting them for the long term to achieve truffle growth, makes a unique marriage of economic and ecological sense. It would be over stating to suggest we are planting the forests of the future. But we are growing a valuable hardwood tree in quantity and in the end a mature cut

lumber resource, providing a win for you, sustainability and the environment.

8


Background — What is a Truffle?

A truffle is the fruiting body of an underground mushroom or tuber; spore dispersal is accomplished naturally through fungivores, (animals that eat fungi) or by natural (but pure) inoculation of the tree roots under laboratory conditions. The latter method which, we apply ensures that our trees will have no competing spores on their roots at planting and therefore have the maximum chance to develop. Almost all truffles are ectomycorrhizal and are therefore usually found in close association with a variety of tree species. We plant on Oak.

.

History — Understanding the history of truffle cultivation, helps explain the value of investing now. Cultivation - In 1808, Joseph Talon of Apt in Vaucluse, Southern France was successful in his at-tempts to cultivate truffles. People had long observed that truffle, were growing among the roots of certain trees, and in 1808, he had the idea to sow some acorns collected at the foot of oak trees known to host truffles in their root system. The experiment was successful: years later, truffles were found in the soil around the newly grown oak trees. In 1847, Auguste Rousseau of Carpentras (in Vaucluse) planted 7 hectares (17 acres) of oak trees (again from acorns found on the soil around truffle-producing oak trees), and he subsequent-ly obtained large harvests of truffles. He received a prize at the 1855 World's Fair in Paris. These successful attempts were met with enthusiasm in southern France, which possessed the sweet limestone soils and dry, hot weather that perigord truffles need to grow. In the late 19th centu-ry, an epidemic of phylloxera destroyed many of the vineyards in southern France. Another epidemic destroyed most of the silk-worms there, too, making the fields of mulberry trees useless. Thus, large tracts of land were set free for the cultivation of truffles. Thou-sands of truffle-producing trees were planted, and production reached peaks of hundreds of tonnes at the end of the 19th centu-ry. In 1890, there were 75,000 hectares (190,000 acres) of truffle-plantation. Decline – In the 20th century, with the growing industrialization of France and the consequent rural exodus, saw most of the 75,000 hectares truffle fields planted in 1870 – 1890 return to wilderness. The First World War also dealt a serious blow to the French countryside, killing over 20% of the male work force. The newly acquired techniques of trufficulture were lost. Also, between the two World Wars, the truffle fields planted above stopped being productive. After 1945, the production of truffles plummeted and prices have risen continually and dramatically.

We plant the black perigord or winter truffle (Tuber Melanosporum) for the following reasons:

It is the world’s second most valuable truffle

It is the most successfully cultivated truffle

Our plantations are located where soil and climactic conditions are perfect for maximising crop levels of this truffle variety

Our scientific partner is Micologia Forestal & Aplicada — the World’s premier truffle science & tree production company, with proven procedures and the best results.

Our trees are grown from acorn and inoculated in a clean environment at our world class nursery and plant research facilities of the IRTA, Barcelona

http://en.wikipedia.org/wiki/Sporocarp_(fungi)

http://en.wikipedia.org/wiki/Fungivore

http://en.wikipedia.org/wiki/Mycorrhiza

http://en.wikipedia.org/wiki/Rural_exodus

http://en.wikipedia.org/wiki/Rural_exodus

http://en.wikipedia.org/wiki/World_War_I

9


Truffle Losses The Graph below—shows the loss of black truffle in France from a crop of 1050 tonnes in 1905 to a crop of between 6 and 40 tonnes in the early 2,000’s.

Combined French production of “Perigord” Black -Tuber Melanosporum (TM) and Tuber Brumale 1903 - 2002

Wild & Cultivated — France, Spain & Italy The reality of truffles today is that annual crops have continued to fluctuate as per above numbers but broadly decline over the last 15 years, due to increasingly and prolonged dry summers in the Mediterranean basin and the three principle truffle producing countries there. Spain being most southern of the three is the producer of 34% of black perigord truffle. Unfortunately, despite substantive cultivation efforts, 90% of Spain’s supply is wild and vulnerable to the climate. This culminated in the dramatic near total loss of the Spanish crop in winter 2012/13, sending shock waves through the truffle world and causing prices to double across all commercial black truffle markets.* Present Day - In the last 20 years Truffles have been seen as an investment crop, for those who have the time and patience. Plantations are being laid down in places as far afield as the Middle East, USA, South America, Canada, Australia and New Zealand. Some show promise, but overall it is true to say these have met with mixed success. The reality is that success is not just dependent on in-put, but the opportunity to maximise return. As such, not being in France they can never command the premium prices that true “French” Black Perigord Truffles do in the world’s mar-ket. It is for this reason that we have put in place the unique combination of:

1. World leading scientific expertise and rigour. 2. Efficient investment structures 3. The proven cultivation terroirs of Southern France

New planting April 2014 on

the MF&A experimental

plantation at;

Batea in Catalunya.

TFe plantations in France

benefit from all the leading

edge science and experi-

mentation carried out here.

* Update—2015/2016 Season

Drought in Italy 2015 saw large

shortfalls in supply of Summer

Black Truffle, with wholesale pric-

es rocketing from €220 to $460

p/kg and a disastrous supply of

White Alba Truffle, wholesale

prices up from €2,200 to €3,900

Spanish Drought impacts on

Perigord Truffle showing cur-

rent price doubling.

10


The Long Term Shortened - Subject to historical limits of plantation management and knowledge

of the life-cycle of truffles, plantations have delivered typical first crops between 9 and 15 years after

initial tree planting. Thanks to advances in recent years, including leading work by our partners, we

are now realising first crop from year 5† and on remarkably small trees.

The Scientific Approach - There has been an application of improving

science to truffle inoculation and much of this has been led by MF&A.

Their rigorous scientific approach to inoculation and plantation hus-

bandry has shown tremendous results. MF&A trees planted since 1989

have produced yields in excess of 50kg p/hectare, where irrigation has

been implemented and some of their husbandry advice has been fol-

lowed by plantation owners.*

As of 2012 there were examples of 200kg per hectare MF&A supplied

plantations.* MF&A have advanced the science of inoculation and hus-

bandry substantially since these examples were planted. All observed

plantations supplied with MF&A trees in the last 10 years have seen

first truffle yield in Year 6 for example and some as early as Year 4.

Our Science Partners—Micologia Forestal & Aplicada (MF&A)

MF&A are undoubtedly the World’s best truffle science team and particularly in regard to the peri-

gord truffle. Achievements include:

Nearly 400,000 trees inoculated since 1989**

Leading scientific publications in key areas of truffle science &

husbandry

Plantations supplied in 4 continents & 16 countries; ground

breaking plantation successes

MF&A have been pioneering and testing - planting, manage-

ment, monitoring & control methods globally for over 20

years, from watering, to depth, to density.

*The average planting density p/hectare on these is 280 trees p/hectare. We plant at 500 trees p/

hectare minimum. † Current trees for sale are already 3 years old = crop in 2 years — winter 2017/18

Truffle Spore under microscope

78g of truffles harvested from a 5 year old trees at Batea Plantation Friday 14 February 2014

* In 2014 this plantation that adheres to all guidance from MFA achieved a crop of 378kg

11


Operational Strategy

Plantation Development – We grow Quercus Ilex (Holme or Mediterranean Oak) from acorn in

both traditional tree form and MF&A’s specially formulated bush to enhance our planting densi-

ties at 500/600hectare, whilst minimising pruning activities, which can effect root development.

They are inoculated under the most rigorous “clean” laboratory conditions to ensure there are no

other competing spores on the tree roots. They are then grown in carefully prepared substrate

beds under strict nursery conditions. After 2 — 3 years they are planted-out carefully by hand.

We use the world class nursery facilities of the Institute Research & Technologia for Agronomia

(IRTA), near Barcelona. A world class plant research centre. All this is commenced two seasons

before planting. Trees are regularly analysed to ascertain spore development through this period

and only trees which meet our required standard are selected for planting. Per 1,000 acorns

propagated only 200 will make it through the rigorous analy-

sis programme of their first year of growth to become TFE

planted trees. The 10,000 trees currently in the IRTA started

out as 55,000 acorns that were originally germinated in spe-

cially prepared silica beds.

Through our close working relationship with MF&A we have

been able to secure an exclusive supply contract of their

trees to the territory of France. Exceptions to this are for a

small continued supply to interested individuals of a maxi-

mum of 1,500 trees per annum and any existing small sup-

ply contracts they may have until 2017 totalling an additional

1,500 trees. Additionally, MF&A will not for the life of their

contractual commitment to us enter into a technology trans-

fer agreement for their inoculation technology in France or to another non-French technology

transfer beneficiary to supply trees to France.

Land Selection & Plantation Location - There has been a tradition of plantation location protec-

tion and this is as much a security issue, given the prospective value of the crop and a tradition of

secrecy that follows from the wild sources still prized and protected by truffle hunters. We have

obtained land purchase opportunities in some of the best truffle areas including a number of

small parcels in Uzes, the home of the world’s largest

truffle festival, over 40H in ancient Roussillon truffle

grounds south west of Perpignan, 52H in the

Corbieres wine land in the Aude department, 150

hectares in Lozere Department. In addition, we have

acquisition opportunities amounting to 38H in Peri-

gord (including the Perigord National Park) among

others as a valuable component in our brand devel-

opment.

Husbandry & Cultivation — Among historically domi-

nant French truffière (truffle growers), achieving suc-

cessful truffle growth has traditionally been perceived as an ‘art’. This is because many factors go

into successful truffle cultivation and little data of these factors has been gathered and analysed

reliably beyond the work of MF&A in Spain. These factors form a matrix of inter-related choices

and practices including the host tree, the land type, land location, land orientation, previous use,

soil types and structure, planting times, densities, pruning, soil nutrient maintenance, weed sup-

pression, inter-planting, distance from other foliage, watering strategies, etc.

Tree Development—IRTA Feb 2014

12


We take the optimum of each and apply it to these factors and combine them in our practice.

To this we add the latest experimental field outputs from Batea, along with analysis and under-

standings from other participating plantations to continually develop leading edge best science

and management. By doing this successfully, we can achieve the maximum plant health and

truffle yields, that are sustainable for in excess of 50 years. Crucially, we do not make plantation

location decision for convenience of management, but for maximisation of return. Plantations

will be protected from both wildlife and human interference via appropriate security.

Harvesting & Processing – There is a substantive effort in harvesting and like much of the activi-

ty in our plantations it is compressed into the months of November to March. Like all modern

truffière we use dogs as the picture here shows. For our

French plantations our intention is to focus on one spe-

cific breed specialised in truffle hunting. We have the

good fortune that one of the Royal Canine Club certifi-

cated breeders is a friend and we have agreed to take a

breeding male puppy in the next year. Our breeder is

assisting us in sourcing a female from abroad with the

right pedigree to create a healthy breeding pair from

next year.

Harvesting must be carried out by hand, with the han-

dler working in close cooperation with the dogs and dig-

ging out each truffle carefully with the specialist tool.

Once collected, truffles need to be cleaned, graded and

packed ready for shipping. Fresh truffles have a shelf-life

at full to 80% potency of 10 to 14 days.

Yields — An Introduction

Individual Tree Production: It is not uncommon for a single brûle (tree root system) to produce 2kg of truffles and some more rarely (historically) can produce up to10kg. Plantations can achieve in excess of 200kg a year per hectare*, from as little as 280 trees p/hectare, but at the same time there have been trees and plantations that never become productive.

Years of Production - Expertly, maintained oak would be expected to have a viable production life of 50+years.

The MF&A approach, and methodology have proven success, with incremental truffle yields be-

ing delivered earlier. Combining the very latest developments with TFe’s premium French loca-

tions will see us deliver market leading plantation yields and returns.

Lagotto Romagnolo ”The” truffle hunter

* In 2014 a single hectare Spanish plantation that adheres to all guidance from MFA achieved a crop of 378kg

http://www.google.co.uk/url?sa=i&rct=j&q=&esrc=s&source=images&cd=&cad=rja&uact=8&docid=cGtCa11sUzM9XM&tbnid=k_frAJQ5vP1RMM:&ved=0CAUQjRw&url=http%3A%2F%2Flagottoromagnolocanada.blogspot.com%2F2009%2F11%2Fblog-post_22.html&ei=YKuNU6GiA8XFOcDqgOgK&bvm=bv.

13


Historic & Current Market Yields & Prices

Yields from data collected in Europe for the black Perigord Truffle,

show that truffle plantations historically produced between 20-

90kg per hectare of truffles per year at an average wholesale price

in France of €1,050 p/kg. This is a large range and it is important to

realise that the figures take into account old plantations, planta-

tions with much lower planting densities than we shall be planting

and that most of these are in less-than ideal conditions, without

irrigation, incorrect ph levels etc. However, the full spread of his-

torical plantation productions within Europe is 0 - 200kg per hec-

tare.

Up until the last two decades plantations took from 9 -15+ years to produce a first yield with Perigord

Truffle. The figures detailed in the table below take into account development by MF&A over that peri-

od and show a median rise to maximum yields and are based on the full recorded production range

and a wholesale value of €750 p/kg. This was the low price through the last 9 seasons. The wholesale

annual high through this period was €1300p/kg. Excepting 2012/13 where shortages led to a doubling

of prices.*

*See page 9 — paragraph headed “Wild & Cultivated — France, Spain & Italy”

Realising Returns - The prices stated above are prices achieved in the wholesale mar-kets of France. The retail price would be considerably above this. A typical example is the Gourmet Foodstore in the USA, selling cheaper Italian fresh winter truffles for an average of $1,920.00 p/lb which, equates to a kilogram price in Euros of €3,903.00 (correct as of 11/01/2015). For sale at €3,501.00 with the Fine Food Specialists of London at this date. *Note our field-to-plate “Crop Commercialisation” strategy over-page

Age from planting in brackets (†) Yields are historic and are not guaranteed in the future

Uzes old plantation adjacent to our land

A Table of Indicative Historical Yield Variables and Related Market Returns Per Crop Volume †

14


Future Market Yields & Prices - Pricing at both wholesale and retail as stated above, have proven to be constant over the past 8 years, (excepting 2012/13) and this has been despite the global economic recession. Demand for truffles in the USA has been very strong over this period, with both leading middle market wholesalers Urbani and Sabatino growing their distribution networks there exponentially over the period. As has proven in recessions past, demand for luxury goods are rarely affected in these times. Market commentators believe that demand will continue to grow in excess of supply in the USA with a current market value having risen from $4m to an esti-mated $20—$30m.* The European markets for luxury fine dining ingredients have shown the same resilience and increasing demand is equally evident here. Once again, supply and the idiosyncratic controls on truffle markets in the principle countries of France, Italy and Spain play a part in artificially keeping back demand. All appear-ing to be in place to maintain flawed price controls. The increas-ing evidence of criminal activity in the European truffle markets, in particular Italy and the associated risks such criminals are tak-ing is a clear sign of short supply and increased opportunity for those who can legitimately grow quality truffles at volume. Current global demand is estimated at 1,000 – 2,000 tonnes per annum, with current supply sea-sonally averaging 40 tonnes. It will be the “true French black winter truffles” that we are producing that will command the most desirability. We are confident that the representative network and end-user market which, we will be targeting through our agency and marketing network will drive exponentially increasing demand, as our supply comes on stream. Consequently having little or no negative effect on price impact against projected the volume increases we are bringing to the market.

Our Yield Projections - Our projections are based on adding 60% + yield volume (based on the latest ad-vances from MFA, and high-er density planting) against the md-point of typical ex-isting Spanish/French plan-tations known to MFA, with-in the mode parameter (bell curve) producing p/hectare yields of 42kg to 118kg p/hectare. We target a yield max-out of 128kg/h at year 12 and all our re-turn projections are based on a rise from 3kg/h in Year 5 after inoculation. Graph 3 illustrates this performance for our current 3YO trees on sale now (Thus first yield is Year 2) The improved science we are bringing to our planta-

tions in all aspects of our processes will see yield and quality improvements. We anticipate these to be substantial against existing fruiting plantations anywhere else and certainly those globally that have been supplied with direct or derivative MF&A inoculated trees. Despite this, we have kept to prudent maximum yield forecasts at 128kg/hectare (256g/tree). Based on stated scientific and husbandry improvements yields may prove to be dramatically higher. They may of course be less.

0

20

40

60

80

100

120

140

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15

Kil

os P

er H

ecta

re

Forecast Yields

Truffle Yield

* Bloomberg TV on US Truffle Market—2014 https://youtu.be/x6eX2QG6Ixs

15


Crop Commercialisation — Based on projected yield and reliability of supply from our Plantations, we will be able to develop long term supply relationships to maximise the return on our crop on an incre-mental basis. Initially, our lower volumes may necessitate a focus on the wholesale markets and lower margins these bring. * By year 10 as our volumes grow, we will invest further in our network and sell into wholesale, trade and retail, increasing not only overall returns, but returns by weight and by as much as a 30% increase on average. We plan for development of preserved and derivative truffle delicacy products such as genuine oils, tapenades, salts and other flavoured delicatessen goods, under an established and market leading luxury brand. Additionally, we are cur-rently looking at new blast freezing packaging techniques for example and will continue to follow up any advances in this area of food preservation that can successfully extend fresh shelf life. All this will provide year round and further en-hanced per weight returns. Early stage branding and development of our Marque will have taken place in-house and through external consulta-tion by this stage and any refresh and upgrades to our visual identity will be implemented. We anticipate a marque that reinforces our Vision & Mission. *The ROI Table below is based on wholesale ‘All’ season prices of €500/kg. Annual minimum established beginning of season, French wholesale price sold to dealers on plantation (€700p/kg) . Your Purchase Price and Projected Annualised — Return on Investment for 3 Year Old Trees *

Land Area 1/8 Acre 1/4 Acre 1/2 Acre 1/3

Hectare Acre

2/3 Hectare

Hectare

Number of Trees 25 50 100 165 200 335 500

Purchase (3YO) £7,836 £14,614 £25,317 £38,281 £45,756 £66,310 £95,745

Yr2 Kg's/H 0 0 0 0 0 0 0

Yr3 3 84 168 336 554 672 1,126 1,680

Yr4 6 168 336 672 1,109 1,344 2,251 3,360

Yr5 12 336 672 1,344 2,218 2,688 4,502 6,720

Yr6 23 644 1,288 2,576 4,250 5,152 8,630 12,880

Yr7 38 1,064 2,128 4,256 7,022 8,512 14,258 21,280

Yr8 51 1,428 2,856 5,712 9,425 11,424 19,135 28,560

Yr9 78 2,184 4,368 8,736 14,414 17,472 29,266 43,680

Yr10 90 2,520 5,040 10,080 16,632 20,160 33,768 50,400

Yr11 114 2,656 5,409 11,208 18,815 22,806 38,853 63,840

Yr12 128 3,048 6,193 12,776 21,402 25,942 44,106 71,680

Yr13 128 3,048 6,193 12,776 21,402 25,942 44,106 71,680

Yr14 128 3,048 6,193 12,776 21,402 25,942 44,106 71,680

Yr15 128 3,048 6,193 12,776 21,402 25,942 44,106 71,680

Harvest Total 23,275 47,037 96,024 160,048 193,998 328,213 519,120

Tree Sale 12,191 24,772 51,104 85,609 103,768 176,424 286,720

Total Return 35,466 71,809 147,128 245,657 297,766 504,637 805,840

IRR 15% 16% 17% 18% 18% 20% 21%

ROI 353% 391% 481% 542% 551% 661% 742%


16


Property v Alternatives v Forestry & Truffles

Comparing investments and the returns they offer that are “different” to

those that we invest in everyday like property can be challenging. The variety

of benefits and dis-benefits that each claim can be confusing .

So for simplicity, what we’ve tried to do in Chart 2 is provide an annualised

investment yield that you can compare against the typical yield targets on

which professional buy-to-let property purchase decisions are made..

For most such landlords they will have a target yield based on factors like,

location, cost of the property, cost of any improvements and maintenance

costs. To this they will usually add a “void” element (the time property is like-

ly to be empty in a typical period (between tenants for example). The last factor will be what they would be get-

ting for their money in a non-risk situation (a bank deposit account).

In current markets good landlord yields are anything above 5% annually (rent as a percentage of invested capi-

tal), great yields are anything over 8% and anything over 12% are generally seen as high performing. Of course,

there’s also the capital growth factor to be considered. Liquidity for any comparison is valid. The UK, US and

Western Europe have a ready and well established market for the sale of bricks and mortar. However, location

has proven increasingly to be a major factor, in recent years, in the ability of an owner to “cash-in” their invest-

ment, as a result of hugely varying regional property markets. Lastly, of course taxes on profits and capital gains

have to be taken into consideration and they have been significantly increased recently in the UK for example.

International Buyers

Much of the tax and benefits information here is directed at UK buyers and the well identified appetite they

have for alternative, tax beneficial investments. However, we are very much an international company, providing

opportunities for global clients seeking ethical, sustainable and ecological mid and long-term investments.

We operate from a UK Sterling base as a corporate entity, with plantations in France and, plant development in

Spain. The trading of truffles largely takes place in Euros unless within the US, so we are well used to coping with

the multi-currency requirements of a diverse international business.

From a tax perspective, The French Impot (Revenue) allow truffles to be free of income tax for the first 15 years

from planting. Thus, within the life of our plans international clients can enjoy tax free, “in-hand” returns from us.

Thereafter, any taxes due would be subject to the prevailing laws affecting the receiver.

Purchases can be denominated in US Dollars and Euros in amounts correlating to the Sterling equivalents at the

time of purchase. For ease we enclose a table below showing the comparative Sterling, Dollar and Euro, expend-

itures and returns for ease at a rate of 1.00 GBP to 1.44 USD and 1.00 GBP 1.35 Euro.

Land Use Trees Total Cost

Total Income

Profit

Total Cost

Total Income

Profit

Hectare 500 $137,873 $1,160,410 $1,022,537 129,256 € 1,087,884 € 958,628 €

Two Thirds Hectare 335 $95,486 $726,678 $631,191 89,518 € 681,260 € 591,742 €

Acre 200 $65,889 $428,783 $362,894 61,771 € 401,984 € 340,214 €

Third Hectare 165 $55,124 $353,746 $298,622 51,679 € 331,637 € 279,958 €

Half Acre 100 $36,456 $211,864 $175,408 34,178 € 198,623 € 164,445 €

Quarter Acre 50 $21,044 $103,405 $82,361 19,729 € 96,942 € 77,214 €

Eighth Acre 25 $11,284 $51,071 $39,787 10,579 € 47,879 € 37,300 €

3 Y

ea

r Old

Tre

es - Fo

reca

st

(IRR

‘s & R

OI’s) a

s Ta

ble

1 p

3

17


In simple terms, an investment in truffles is actually an investment in forestry and we’ve already covered the tax

aspects of forestry compared to other investments. Forestry is considered an “alternative” investment in the

professional investment world, but it is certainly becoming more mainstream along with other generally target-

ed alternatives and the forecast for forestry and agriculture was a growth of 25% in investment levels in

2015.* Interestingly, for the very wealthy, many who have always invested in forestry as generational wealth

preservation and crucially a “non — correlating” component of their portfolios, it has always been viewed as

part of the “property” element - after all trees do grow on land.

*Moneyweek

So comparing Truffle Farms to UK buy-to-let property, the trees are the property and the truffles can be said

to be the annual revenue returns that compare against rental income. The downside is that for the initial years

there is no yield, but once we move into productive years our investment plan shows yields that hit highs way

above those achievable on typical, even high performing UK, US and Prime European city buy to let properties.

What about voids? — managed and irrigated plantations means there are no voids beyond pre-harvest years.

What about maintenance? - Chart2 shows what you get net of all costs, including all maintenance charges for

the life or your ownership.

What about Capital Growth? - The figures shown in Table 1 Return on Investment are net “in-the-hand” returns

and show ROI’s from 353% to 742%.

What about Liquidity? - The vast and ever increasing gulf between truffle supply and demand goes way beyond

even anything that the voracious London property market can even achieve as a supply/demand gap. High

yielding Truffle estates rarely if ever come on to the open market. We are confident the demand to purchase

such high performing plantations in premium locations with, 45 years of premium and potentially incremental

returns left in them will be sufficient to command the 8 times annual returns we have had independently fore-

cast. Further, once a tree is productive we are confident there will be a ready market for it, allowing you early

exit and this is something your contract and our service values allow provision for.

Chart 2 — Yields per annum for Truffles Trees *

0%

4%

18%

32%

41%

46%

3%

25%

38%

50%

57%

0% 0%2%

13%

30%

46%

67%

75%

7.3% 8.1% 9.2% 10.6% 11.7%

0%

10%

20%

30%

40%

50%

60%

70%

80%

Yr1 Yr2 Yr3 Yr4 Yr5 Yr6 Yr7 Yr8 Yr9 Yr10 Yr11 Yr12 Yr13 Yr14 Yr15

Annual Yield Comparison 'net' Buy-to-Let v TFE

Eighth Acre

Acre

Hectare

Buy-to Let*

* BTL data from

top 10 performing towns UK (HSBC Survey May 2014) average annual rent increments 3.4% adjusted for costs .

(*) Yields are historic and are not guaranteed in the future

18


Interests Aligned

Critically for us and you our interests are fundamentally aligned. Chart 3 above shows essentially how

together, we receive our income and capital returns. Only by maximising the crop, through overall

effective management and yield production can we achieve the returns that allow you to enjoy 80%

of crop and us 20%. In addition we retain a substantial holding in the plantation, by retaining a sub-

stantial portion of the plantations in the whole, as part of the shared proportional crop. Further, the

capital gain component of the sale at the termination of the plan is shared 50/50.

Why we look after you?

We view our tree holders as partners sharing in the opportunity that we have created. It’s for this rea-

son that we hold an open visit policy as much as possible to all our locations. It may not always be

possible to just “drop-in” to the IRTA as it’s a Catalan Gov’t Research Facility, but we do like to arrange

visits there or to Cardedeu, MF&A’s principal laboratory research & admin facility, mushroom farm

and nursery.

Part of a global scientific rigorous programme

Our plantations form part of a global scientific research network and will over many years provide rig-

orous data and insights to the development of truffle plantations. As part of this each tree receives

it’s own barcode tag, carefully recording all the inputs and applications, the tree has had from acorn

germination, through spore inoculation, to careful hand planting, field treatments, irrigation levels,

harvestings etc., throughout it’s life. Thus further guaranteeing the rigour of performance reporting

and returns you will receive.

Chart 3 — Breakdown of Return Components


19


Tax Treatments — There exists an increasing number of alternative investment oppor-

tunities, including a variety of Forestry Investment opportunities. They each may or may

not be attractive to you as an investor looking for diversification in your portfolio. Whilst

we have some further experience of forestry and agriculture, we only have expertise in

the opportunities that we offer.

We are confident we offer a number of unique factors that give our plantations particu-

lar values for UK and European tax payers. These are highlighted in the graphic below.

Exemptions notified above are referred to under HMRC BIM67701 -

www.hmrc.gov.uk/manuals/bimmanual/bim67701.htm.

Inheritance Tax — For those seeking an inheritance tax solution, our offering provides

an opportunity to gain exemption for the sum invested through the application of Busi-

ness Property Relief. http://manuals.voa.gov.uk/corporate/publications/Manuals/

InheritanceTaxManual/sections/j-section_10/iht-man-s10-pt1.html — Section 11.8

VAT — Food producing plants are zero rated in the UK.

French Tax & Truffles:

France as part of the EU is part of the wider EEA and any exemptions applying as

per the graphic above will be applicable for UK tax payers.

Under Article CGI 64-2 CGI (of the French tax code) provides that truffles remain

free of tax for fifteen years from the year of planting.

It may be possible dependent on your provider to gain approval for this investment to

be included in your SIPPS/SSAS portfolio and gain additional tax benefits that may arise

from that. However, we are not able to advise you on that and suggest you speak direct-

ly to your provider or an appropriate Financial Adviser/Intermediary.

We have referred to our understanding of the potential tax treatments anticipated.

However, we are not qualified nor offer advice as to their applicability at the time of pur-

chase or throughout the life of our programme or HMRC’s’ interpretations in relation to

the truffle crop.

20


Impacts on Returns — Management & Mitigation

Land & Forestry Taxation and Charges * - Agricultural land ownership in France creates

specific and often substantive financial obligations, both in the context of taxes and social

charges on the part of the farmer. However, newly planted truffle plantations In France un-

der l'article 64-2 du code général des impôts (CGI) section 230 farming truffles — offers a

15 year exemption from taxes from the year of first tree planting in the ground.

We have created a viable tax and social charge efficient structure whereby all land owner-

ship of our plantations will be held by TFe or TFe controlled UK Ltd land holding companies

(LHCs). Thereby ensuring that all taxes falling due would be held as taxable in the UK under

the French/UK Taxation treaty. For UK and some other EEA country domiciled tax payers,

EEA located forestry planting and its related incomes remain free of certain taxes including

income, corporation, inheritance and capital gains tax where the trees have been planted

in the European Economic Area.

As necessary and allowed, TFe or it’s LHCs will hold the plots individually at levels below the

minimum required for farming truffles in each department, thus exonerating them from

joining the French MSA (agricultural social body) and its related social charges, that other-

wise would apply.

You as purchaser will then hold a licence to plant and cultivate the trees on the land, allow-

ing purchasers to enjoy the tax benefits for supporting forestry planting in Europe offered

by the various Tax Authorities.

*A further explanation of taxes and laws applicable as we understand them can be found

in Clause 16 of our Premium Member Terms & Conditions. Truffle Farms Europe Limited

are not qualified tax advisers and any information in relation to taxes cannot be relied up-

on. Purchasers should take the necessary advice from an appropriate and qualified source

in respect of tax treatments that may apply to a purchase with us.

21


Purchase considerations and risk factors

A purchase in agriculture involves certain risks. Prior to making a purchase decision, the prospective Purchaser should carefully consider all of the information in this Prospectus, including the following risk factors. The following list is not intended to include all factors a prospective Purchaser should consider, or to be all inclusive in any respect. Prospective Purchasers should make their own inde-pendent evaluation of all purchase factors and should consider in full the other sections in this docu-ment. 1. General Purchases in forestry and trees should be regarded as a medium to long-term purchase. There can be no guarantee that the purchase objective of each parcel set out herein will be achieved. There are no assurances that any purchase in any of the parcels will yield a profit. The value of purchases and the income from them, and therefore the value of any income from them, can fall as well as rise. 2. Capital Risk — Purchasers should note that particular parcels/trees may be subject to lower per-formance than others, which could reduce the anticipated return in comparison with other parcels/trees. Some parcels/trees may not produce a return and the Purchaser accepts the risk of Capital loss in such cases. 3. Currency Risk — Crop and tree disposals may be in currencies different from the Purchase Cur-rency and this may involve certain risks. These risks include among other things, trade balances and imbalances and related economic policies, unfavourable currency exchange rate fluctuations, ad-verse international and regional political and economic developments, imposition of exchange con-trol regulation by governments, withholding taxes, limitations on the removal of funds or other as-sets, policies of governments with respect to possible nationalisation of their industries, political diffi-culties, including expropriation of assets, confiscatory taxation, potential market volatility and lack of liquidity in some markets. TFe may hold Financial Instruments and deposits denominated in curren-cies other than the Purchase Currency. 4. Tax Risk — The tax treatment of any actual or deemed profit or loss on the transfer or disposal of Trees/Parcels by a Purchaser, or on any holding of Trees, may also change over time. The imposition of taxes at some future date during the operation of the Programme would be borne by the Pur-chaser and this could reduce the Returns Amount. 5. Agricultural Risks of Investing As with any investment in agriculture, there are inherent risks in primary production due to matters beyond the control of TFe. In addition the Plantations are subject to the commercial risks of a long term venture. So that prospective Purchasers may be aware of those risks that may have a material effect on an their Purchha-se, they have been detailed below. The Management Team will continue to use all the knowledge and experi-ence available to them to monitor the risks and implement all necessary procedures to minimise their effect. 6. Drought Risks — Some of our identified plots have access to their own water basins, such as the 52h Corbieres location. Others have access to the irrigation canal system prevalent in the Roussillon. Where nei-ther of these are available multiple deep bore holes will be sunk to hit the water tables and aquifers that lie below the land. 7. Water availability —The Plantations will be irrigated with water from the sources as above. 8. Flood — Our plots are selected in advance with no flood or minimum flood risk. 9. Frost — Frost is normally not a risk issue for the Plantations. Oak trees are native to areas that experience extreme frosts.

22


10. Hail, storm, fire risks —The truffle grows underground in a symbiotic relationship with the trees. The truffle relies on support from the trees for certain nutrients; therefore, no truffles can be grown without healthy trees. Risks from hail, storm and fire are real. Hail can damage the host trees but is unlikely to destroy them. Leaf and branch damage is possible; however, this type of damage will have a negligible effect on truffle production. Storm damage can completely remove trees and therefore is a real risk. The Roussillon and Aude departments are notorious for its strong winds, being dominated by the Tramontane, which blasts down off the Pyrenees. Conversely, this constant buffeting through growth stages enables the trees to develop broader and more force resistant root systems, thus improving their ability to resist storm force. Fire is a real risk to the Plantations in the Languedoc, but little or no risk to those planned for the Perigord (Dordogne Department). Potential fire damage will be managed by the provision of fire breaks and main-taining the Plantations in a clean and manicured condition. The Plantations are fully irrigated. This will en-sure there is no dry fire hazard within them. The Management have reviewed the fire records for specific locations via the French Promethee Fire Risks Database for the Mediterranean Region in France. The following Table provides the results, from 01/01/1997 to Present. We are awaiting insurance quotations for both crop loss and replacement trees.

Interestingly a US study concludes that “Prescribed burning may enhance the regional diversity of truffles for mycophagous mammals across the forest landscape without impacting total abundance in Yosemite National Park.” A final point is that Truffle Plantations in very high risk fire areas of Spain are actually tacti-cally located as fire breaks. 11. Pests and disease damage —The potential for disease risk to oak trees is considered low. There are no known diseases that could cause significant tree fatalities. Truffles can be attacked by slugs and snails if they are close to the surface. Liodes is a new pest that has appeared in plantations in the Teruel truffle area of Spain. We will be careful to monitor and understand any migration of this pest. In any case, pests will be controlled by the selective use of environmentally friendly pesticides and herbicides. 12. Truffle Yields —Truffle production in the natural habitat is notorious for being unreliable and spas-modic. The Fund’s Plantations will be established using all the current silvicultural and management knowledge to ensure the Plantations have the best chance to produce maximum yields. Major risk factors that are known to affect yields include: - i) Drought This factor will be managed by the use of a modern irrigation system that will water all trees and sur-rounding areas for all Plantations. A risk exists that a drought extending for a number of consecutive years would restrict the amount of wa-ter available for use by the irrigation system. The critical requirements are for approximately 180mm of rain through the dry months of June, July & August. There is minimal risk of this level of water supply not being available and in cases of shortage agricultural land is preferred for water supply in France. There is no history of the canal irrigation system failing due to careful large dam management. ii) Fungal Risks These include the failure to establish the truffle fungus on the seedling tree roots due to adverse environ-mental conditions, the presence of predator fungi or disease. MF&A’s world leading practices and our world class facilities will reduce this risk to the minimum. Rigorous monitoring will be maintained over the

Department Located No. of Fires Total Hectares Notes

Area 1 - Garde 8 2.38

Area 2 - PO 9 10.4

Area 3 - Aude 35 145 11 fires accounted for 143H, of which 1 fire accounted for 102h 24 fires > 1 Hectare

Area 4 - Aude 4 1.66

23


life of the Plantations. 13. Risks of Theft There are considerable risks of theft to truffle property in the European truffle market. Our plantation plan provides for a high level of security fencing and other security measures, including cameras and additional anti-penetration and live 24 hour security monitoring. This will include staff on site at harvest times. A secu-rity consultant will be retained to advise on all measures and improvements that can be added over time. 14. Financial Failure to achieve anticipated truffle prices because of adverse movements in the price for truffles. Tax law changes Any changes to the taxation system during the life of the Plantations or any other new significant levies, taxes or imposts on the Plantations may affect the Fund’s returns. 15. Supply fluctuations World-wide production of the black truffle has varied between 12 and 60 tonnes annually during the 1990’s & 2000’s. Market intelligence suggests production over the last few years has declined below these levels as a series of hot summers have hit the Mediterranean regions of France and Spain. Markets for both fresh and preserved black truffles exist. It is expected that demand will rise with an increased and sustainable supply. Only when supply can be guaranteed from year to year can new markets, such as the BRICS, Asia and the Middle East be exploited. The prices for the French black truffle have not varied from year to year over the last 5 years, despite this variability of supply. However, as explained above the price varies from a low in the early season to a peak in the late season. 16. Demand fluctuations — The exchange rate of the Euro on the world market may have an effect on the demand of French truffles in the export arena. 17. Quality of Truffles — The Management Team will employ modern silvicultural techniques and experi-enced personnel to ensure that the best quality truffles are produced. 18. Consumer Attitudes — Adverse change to consumer attitudes to truffle consumption. 19. Yield Levels — Purchasers should be aware there is a risk that truffles will not be produced in the quan-tities or time frame as estimated in this Prospectus.

A fully mature Mediterranean Oak (Quercus Ilex)

at the front of the IRTA

24


Regulation and Authorisation TFE is a transparent organisation and is clear in stating that the com-pany's specific activities are not regulated by the UK Financial Con-duct Authority (FCA), Financial Conduct Authority website information link - http://www.fca.org.uk/consumers/scams/investment-scams/overseas-property-and-crop-schemes FCA – excerpts from the above page

“Following on from our investigations and warning in July 2010 about the rise of unregulated collective investment schemes (UCIS), many of the tree and crop schemes we are investigating are not authorised by us. In fact, most are – on the face of it – structured in such a way as to avoid the need for our authorisation.”

“While we regulate CIS, we do not regulate the sale of land, trees or crops.”

Truffle Farms Europeis not, nor has ever been the subject of an FCA (nor its predecessor FSA) investigation, nor shall there ever be an at-tempt to structure the sale of TFe products in such a way as to avoid regulatory authorisation. Each client purchases the individual number of trees they select and these are accordingly marked at the time of purchase or planting. It is at the client’s discretion, as to whether they choose to have the crop from these trees included in the proportion-al returns as stated in our Terms & Conditions or not. Full advice as to the risks in relation to crops and specific tree production are given to each client prior to their decision in respect of such crop allotment.

http://www.fca.org.uk/consumers/scams/investment-scams/overseas-property-and-crop-schemes

http://www.fca.org.uk/consumers/scams/investment-scams/overseas-property-and-crop-schemes

25


It may however be judged on a prospective client’s part or recom-mended by TFe and with regard to the specific sum being proposed for investment that, consideration be given to the purchase deci-sion that is at least equal to that of a regulated investment. In such cases, we request our prospective clients seek out and speak with a regulated and authorised Independent Financial Advisor of their choosing, prior to making the purchase decision.

The rules outlining what activities require regulation are complex

and for this reason TFE is unable to make further comment and we

refer prospective clients to the link above and related pages on the

FCA website.

Advising, Arranging and Managing Investments It is TFe’s understanding that purchases based upon the beneficial ownership of tangible property assets as offered by TFE are not designated investment types. The company is therefore not consid-ered to be performing the function of arranging (bringing about) deals in investments.

The alternative investment opportunities offered by TFe are not considered to be collective investment schemes, in part because there is no pooling of funds which are then collectively invested in underlying assets and the activities of the firm are therefore not considered to be a designated investment type as per the Regulat-ed Activities Order Part III Article 81.

Potential clients should remain aware that the projects offered by

TFE involve the direct acquisition of tangible, physical assets, rather

than paper-based financial investments, and as such, regulatory

compensation schemes such as the Financial Services Compensa-

tion Scheme (FSCS) or Financial Ombudsman Service (FOS) may not

be available.

26


Pay-As-You-Grow

We have introduced our new “pay-as-you-grow” purchase option to give clients who would

not be able to acquire trees through single purchase lump sum, the chance to accumulate a

holding with us. In effect, we have created a long term, high-yielding savings plan that comes

with all the eco credentials our forestry opportunities offer.

The terms are a little different and we think the overall Investment Rate of Return (IRR) shows

substantial performance .

Our lowest projected return of 23%† PA for less than £50 per month invested

If this is an option you would like to explore speak with your advisor or call us to discuss in confidence.

†23% annualised Investment Rate of Return (IRR)

Total Cost

£107,445 £74,149 £51,216 £42,785 £28,437 £16,564 £8,909

Monthly £596.92 £411.94 £284.53 £237.70 £157.98 £92.02 £49.49

Annual £7,163 £4,943 £3,414 £2,852 £1,896 £1,104 £594

IRR 35% 34% 30% 30% 27% 23% 23%

ROI 530% 463% 376% 370% 320% 246% 269%

Annual Profit & Loss

Year 1 -£7,163 -£4,943 -£3,414 -£2,852 -£1,896 -£1,104 -£594

Year2 -£7,163 -£4,943 -£3,414 -£2,852 -£1,896 -£1,104 -£594

Year 3 -£5,693 -£3,958 -£2,826 -£2,367 -£1,602 -£957 -£520

Year 4 -£4,223 -£2,973 -£2,238 -£1,882 -£1,308 -£810 -£447

Year 5 -£1,283 -£1,004 -£1,062 -£912 -£720 -£516 -£300

Year 6 £4,107 £2,608 £1,094 £867 £358 £23 -£30

Year 7 £11,457 £7,532 £4,034 £3,292 £1,828 £758 £337

Year 8 £17,827 £11,800 £6,582 £5,394 £3,102 £1,395 £656

Year 9 £31,057 £20,664 £11,874 £9,760 £5,748 £2,718 £1,317

Year 10 £36,937 £24,604 £14,226 £11,701 £6,924 £3,306 £1,611

Year 11 £48,697 £28,563 £16,200 £13,329 £7,716 £3,507 £2,199

Year 12 £55,557 £33,160 £18,944 £15,593 £9,088 £4,193 £2,542

Year 13 £55,557 £33,160 £18,944 £15,593 £9,088 £4,193 £2,542

Year 14 £55,557 £33,160 £18,944 £15,593 £9,088 £4,193 £2,542

Year 15 £55,557 £33,160 £18,944 £15,593 £9,088 £4,193 £2,542

Tree Sale

£222,228 £132,639 £75,774 £62,372 £36,353 £16,771 £10,168

Total £569,013 £343,226 £192,600 £158,221 £90,962 £40,755 £23,971

Annualised “Profit and Loss” Table for PAYG - Forecast based on max yield of 128kgs/H and €500 average

seasonal KG wholesale price, as per Table PAYG Clients receive 70% of crop and 50% of disposal returns


27


-£20,000

-£10,000

£0

£10,000

£20,000

£30,000

£40,000

£50,000

£60,000

Year 1 Year2 Year 3 Year 4 Year 5 Year 6 Year 7 Year 8 Year 9 Year10

Year11

Year12

Year13

Year14

Year15

PAYG - P&L by Year

£107,445 £74,149 £51,216 £42,785 £28,437 £16,564 £8,909

Benefits of Pay-As-You-Grow

Accumulate your holding as your earnings increase

Save for your retirement

Save for school and university fees

Create an ecological and sustainable legacy over time

Diversify your overall savings risk

Enjoy member benefits without a lump sum outlay

As mentioned above Pay– As-You-Go comes with specific terms

attached and failure to keep up the regular payments may see

you lose your right to both annual crop and sale returns on dis-

posal of the trees.

Both PAYG Chart and Table illustrated here are based on our current crop of 3 Year Old Trees

(*) Yields are historic and are not guaranteed in the future

28



French Office - 68 Avenue

Charles de Gaulle, 66300

Perpignan, France

UK Office

43 Berkeley Square, Mayfair

London, UK, W1J 5AP

Forestry for Fine Food

Europe Ltd

Truffle Farms

http://www.truffle-trees.com

truffle farms · a truffle is the fruiting body of an underground mushroom or tuber; spore...

Documents